THE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP - November 22, 2010

As we look at today’s set up for the S&P 500, the range is 33 points or -0.64% downside to 1192 and 2.11% upside to 1225. Equity futures are trading higher after Ireland agreed to accept a three-year bailout package from the EU and IMF easing concern over the state of the Euro zone.  No important economic data is expected today.

  • Dover Corp. (DOV) may rise as much as 30% as it cuts costs, expands in emerging markets, Barron’s reports, citing analysts
  • Dynegy (DYN): Blackstone Pres. Tony James said $5-shr offer for Dynegy is full and fair, not prepared to raise, in CNBC interview
  • Genzyme (GENZ) said it is on track to meet Nov. 28 deadline to move finishing and filling ops for U.S. products out of its Allston, Mass., plant
  • Merck (MRK)’s cholesterol drug Vytorin safely lowered risk of heart complications in kidney disease patients in study. Jury found in its favor in Fed. Fosamax case
  • Time Warner (TWX)’s “Harry Potter and the Deathly Hallows -- Part 1” opened with $125.1m in U.S. and Canadian ticket sales, a record for series and sixth-best of all time, missed BoxOffice.com est.

 PERFORMANCE

  • One day: Dow +0.20%, S&P +0.25%, Nasdaq +0.15%, Russell +0.49%
  • Month-to-date: Dow +0.77%, S&P +1.39%, Nasdaq +0.43%, Russell +2.99%
  • Quarter-to-date: Dow +3.85%, S&P +5.13%, Nasdaq +6.31%, Russell +7.13%
  • Year-to-date: Dow +7.44%, S&P +7.59%, Nasdaq +10.97%, Russell +15.83%
  • Sector Performance: Materials +0.80%, Energy +0.84%, Consumer Discretionary +0.47%, Industrials +0.31%, Tech +0.29%, Consumer Staples +0.07%, Healthcare +0.09%, Financials (0.04%), and Utilities (0.38%)

 EQUITY SENTIMENT:

  • ADVANCE/DECLINE LINE: 534 (-1360)  
  • VOLUME: NYSE - 1101.70 (+8.13%)
  • VIX: - 18.04 -3.79% - YTD PERFORMANCE - (-16.79%)
  • SPX PUT/CALL RATIO: - 1.09 from 1.19 -8.45%  

CREDIT/ECONOMIC MARKET LOOK:

  • TED SPREAD - 15.46
  • 3-MONTH T-BILL YIELD 0.14% -0.01%
  • YIELD CURVE - 2.36 from 2.38

COMMODITY/GROWTH EXPECTATION:

  • CRB: 298.89 +1.2%
  • Oil: 81.98 -0.53% - NEUTRAL
  • COPPER: 384.25 +0.10% - BEARISH
  • GOLD: 1,353.90 +0.15% - BEARISH

CURRENCIES:

  • EURO: 1.3673 +0.43% - NEUTRAL
  • DOLLAR: 78.504 -0.14%  - BULLISH

OVERSEAS MARKETS:

European markets:

  • FTSE 100: +0.22%; DAX: +0.47%; CAC 40: 0.27%
    European markets are trading higher in light of Ireland's decision to formally request financial help from its European partners.
  • The request was officially welcomed by the European Union. Sources close to the deal point to a probable 3-year package which will be financed from the EFSM and the EFSF and expected to be in the order of €80-90B.
  • The IMF says it is also ready to join the support program. Contributions from Sweden and UK are also anticipated. Negotiations over the detail of the deal are not expected to conclude before the end of November

Asian markets:

  • Nikkei +0.93%; Hang Seng (0.4%); Shanghai Composite (0.15%)
  • Asian markets mostly rose today on positive sentiment generated by an apparent rescue of Ireland.
  • Construction sent Taiwan higher on news that the government plans to improve housing stock across the island.
  • QR National’s rose 4% on its trading debut to support Australia.
  • South Korea inched up on tech gains, but shippers and financials fell to restrain the overall market.
  • Defensive stocks went up in China, but they weren’t enough to overcome weakness in banks, which fell 1% after their reserve requirement ratios were raised 19-Nov.
  • Property stocks took Hong Kong down after the government imposed new measures to reduce speculation in the real-estate market. 

Howard Penney
Manging Director

THE DAILY OUTLOOK - levels and trends

THE DAILY OUTLOOK - S P

THE DAILY OUTLOOK - VIX

THE DAILY OUTLOOK - DOLLAR

THE DAILY OUTLOOK - OIL

THE DAILY OUTLOOK - GOLD

THE DAILY OUTLOOK - COPPER